Gold, Silver turn weak on global cues, sluggish demand

New Delhi: Both the precious metals, gold and silver, fell on the bullion market on Saturday on profit-selling by stockists, amid a weak trend in overseas markets.

While gold dropped by Rs 250 to Rs 26,660 per 10 grams, silver lost Rs 1,200 to Rs 53,000 per kg on reduced offtake at existing higher levels.

Selling pressure gathered momentum after gold declined in New York, as investors sold the metal to cover losses in other assets.

Gold in New York, which normally sets price trend on the domestic front, slumped by $17.40 to $1,635.80 an ounce and silver by 3.2% to $30.99 an ounce.

In addition, sluggish demand at existing higher levels also influenced the trading sentiment.

On the domestic front, gold of 99.9 and 99.5% purity fell by Rs 250 each to Rs 26,660 and Rs 26,520 per ten grams respectively. It had gained Rs 470 yesterday. However, sovereign ended steady at Rs 21,900 per piece of eight gram in limited deals.

Similarly, silver ready which had gained Rs 3,400 yesterday, met with profit-selling and dropped by Rs 1,200 to Rs 53,000 per kg. Silver weekly-based delivery followed suit and shed Rs 1,435 to Rs 52,265 per kg, after gaining Rs 2,625 in the last session.

On the other hand, coins strengthened by Rs 1,000 to Rs 62,000 per 100 pieces.